Product Strategy Step One - Set SMART Goals

"What is our business is not determined by the producer but the consumer. It is not defined by the company's name, statutes, or articles of incorporation but by the want the customer satisfies when he buys a product or service. The question can therefore only be answered by looking at the business from the outside, from the point of view of the customer."
--- Peter F. Drucker

Have you ever asked yourself this question: How do new products and product innovations fit in the overall plan of my business? How will it help my company achieve its business objectives?

This requires you to have SMART goals. SMART is an acronym for Specific, Measurable, Achievable, Realistic, and Time Bound. To set SMART goals for your new product development efforts, you need to ask yourself these questions: What is the desired number of product introductions, the expected success rates, and the acceptable financial returns from my new products?

An example of a SMART goal could be this: Within the next 3 years, our sales will increase by 50%. A corollary to this SMART goal could be a second SMART goal: Of this increase, 50% will be driven by extensions to our existing product lines, and 50% will come from new products / product lines.